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Introduction to Entrepreneurship
Bruce R. Barringer R. Duane Ireland
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Chapter Objectives
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1.Explain entrepreneurship and discuss its importance. 2.Describe corporate entrepreneurship and its use in established firms. 3.Discuss three main reasons people decide to become entrepreneurs. 4.Identify four main characteristics of successful entrepreneurs. 5.Explain five common myths regarding entrepreneurship.
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Chapter Objectives
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1.Explain how entrepreneurial firms differ from salary-substitute and lifestyle firms. 2.Discuss the changing demographics of entrepreneurs in the United States. 3.Discuss the impact of entrepreneurial firms on economies and societies. 4.Identify ways in which large firms benefit from the presence of smaller entrepreneurial firms. 5.Explain the entrepreneurial process.
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Introduction to Entrepreneurship
There is tremendous interest in entrepreneurship in the U.S. and around the world.
According to the 2007 GEM study, 9.6% of Americans are actively engaged in starting a business or are the owner/manager of a business that is less than three years old.
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Entrepreneurial Revolution
We are in the midst of a silent revolution a triump of the
creative and entrepreneurial spirit of humankind throughout the world.
I believe its impact on the 21st century will equal or exceed that of the Industrial Revolution on the 19th and 20th.
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Entrepreneurial Revolution
> 7 Million American Millionaires are self-made entrepreneur. The poor become rich due to entrepreneurial process. Building entrepreneurial community is the priority of the new E-Generation. Secret weapon of the American economy !
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Mega Entrepreneurs/Founders
Arthur M. Blank The Home Depot, Inc. Ely R. Callaway Callaway Golf Richard Branson Virgin Group of Comp. Paul Fireman Reebok Anita Roddick The Body Shop Frederik W. Smith Federal Express Phil Knight Nike Akio Morita - Sony Liz Claiborne ? Walt Disney - ?
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Mega Entrepreneurs/Founders
Jeff Bezos Amazon.Com Sergey Brin & Larry Page- Google Kenneth H. Olsen Digital Equipment Corp Bill Gates & Paul Allen - Microsoft Larry Ellison - Oracle Steve Jobs & Steve Wozniak - Apple Computer Mitch Kapor - Lotus Dev Corp Michael Dell - Dell Computer Marc Andressen Netscape Mark Zuckerberg - Facebook Heinz Nixdorf Nixdorf Computer AG
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General Motors 185 386 34 Ford 163 365 45 Crysler 151 464 43 Total 499 1215 122 Intel 29 67 179 Microsoft 22 31 362 Cisco 15 21 121 Total 66 119 662
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Amazon.com lists over 45,000 books dealing with entrepreneurship and 118,000 focused on small business.
College Courses
In 1985, there were about 250 entrepreneurship courses offered across all colleges in the United States. o Today, more than 5,000 entrepreneurship courses are offered in two-year and four-year colleges and universities in the United States.
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What is Entrepreneurship? The word entrepreneur derives from the French words entre, meaning between, and prendre, meaning to take. The word was originally used to describe people who take on the risk between buyers and sellers or who undertake a task such as starting a new venture.
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What is Entrepreneurship?
Academic Definition (Stevenson & Jarillo)
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Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. Entrepreneurship is the art of turning an idea into a business. Entrepreneurs assemble and then integrate all the resources needed the money, the people, the business model, the strategyneeded to transform an invention or an idea into a viable business.
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Corporate Entrepreneurship
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Corporate Entrepreneurship
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Is the conceptualization of entrepreneurship at the firm level. All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial. The position of a firm on this continuum is referred to as its entrepreneurial intensity.
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Corporate Entrepreneurship
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Entrepreneurial Firms
Proactive Innovative Risk taking
Conservative Firms
Take a more wait and see posture Less innovative Risk adverse
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The key is to have passion and never give up. This is imperative because it creates a drive to solve business problems - Peter Flint, Trulia.Com
Do what youve passionate about. In the startup world, if youre bored, you might as well be dead - Chris Shaw, ProtechMy Photos
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A second defining characteristic of successful entrepreneurs is a product/customer focus. An entrepreneurs keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople.
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The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs.
In many cases, Execution Intelligence is the factor that det. whether a start-up is successful or fails. o The ability to exec a business idea means developing a business model, putting tog a new venture team, raising money, establishing partnerships, managing finances, leading & motivating employees etc.
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This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. The consensus of many studies is that no one is born to be an entrepreneur; everyone has the potential to become one. Whether someone does or doesnt become an entrepreneur, is a function of the environment, life experiences, and personal choices.
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Most entrepreneurs are moderate risk takers. The idea that entrepreneurs are gamblers originates from two sources:
Entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than people in traditional jobs. Many entrepreneurs have a strong need to achieve and set challenging goals, a behavior that is often equated with risk taking.
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What makes an entrepreneur strong in the eyes of an investor is experience, maturity, a solid reputation, and a track record of success. These criteria favor older rather than younger entrepreneurs.
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Women Entrepreneurs
There were 6.2 million womenowned businesses in 2002 (the most recent statistics available) This number was up 20% from 1997.
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Minority Entrepreneurs
Minorities owned roughly 18% of U.S. businesses in 2002. This number was up 10% from 1997.
Senior Entrepreneurs
Although statistics are not kept on senior entrepreneurs, there is strong evidence that the number of older people choosing entrepreneurial careers is rapidly increasing.
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Young Entrepreneurs
Interest among young people in entrepreneurial careers is growing. According to a Gallop study, 7 out of 10 high school students want to start their own business. Over 2,000 two-year and four-year colleges and universities offer entrepreneurship courses.
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Job Creation
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In the past two decades, economic activity has moved in the direction of smaller entrepreneurial firms, which may be due to their unique ability to innovate and focus on specialized tasks.
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The innovations of entrepreneurial firms have a dramatic impact on society. Think of all the new products and services that make our lives easier, enhance our productivity at work, improve our health, and entertain us in new ways.
Many entrepreneurial firms have built their entire business models around producing products and services that help larger firms become more efficient and effective.
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Step 1
Step 2
Developing Successful Business Ideas
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Step 3
Step 4
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